Two former insurance brokers for the Metropolitan Council on Jewish Poverty have been sentenced to five years probation and ordered to pay $1.5 million each in restitution.
FEGS, one of the largest social service agencies in the United States, is shutting down after unexpectedly losing $19.4 million last year.
Herbert Friedman, the 80-year-old former chief financial officer of the Metropolitan Council on Jewish Poverty, pleaded guilty in New York state court to bilking the charity of $250,000 as part of an insurance kickback scheme.
William Rapfogel, the ousted leader of the Metropolitan Council on Jewish Poverty in New York, pleaded guilty to first-degree larceny for his role in a scheme to steal more than $7 million from the social service agency.
Two former employees of the Metropolitan Council on Jewish Poverty were charged in the multimillion-dollar scam at the New York charity.
The Metropolitan Council on Jewish Poverty will be able to continue receiving New York State funds in the wake of the scandal that has seen its former CEO charged with stealing millions from the charity.
Authorities charged the owner of a New York insurance company with helping William Rapfogel, the former chief of the Metropolitan Council on Jewish Poverty, steal more than $7 million from the organization.
The Metropolitan Council on Jewish Poverty is bringing in New York City’s finance chief, David Frankel, to succeed the fired William Rapfogel as executive director and CEO.
New York City has reportedly suspended all funding to the Metropolitan Council on Jewish Poverty following the firing of its longtime CEO over alleged financial misdeeds.
When the story first broke on Monday about N.Y. anti-poverty and political bigwig William Rapfogel being fired from his longtime post as head of the Metropolitan Council on Jewish Poverty, the exact nature of the allegations were unclear.
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